Tuesday, May 14, 2024

How To Get Help With Mortgage

Don't Miss

Pay Off Your Existing Debts

How To Get a Mortgage (UK) – 9 Tips To Help Your Mortgage Application & Approval

In addition to your income, your mortgage provider will look at your income-to-debt ratios to determine how large a mortgage they will approve you for. For many people, this can be the limiting factor in mortgage affordability, even more so than their down payment.

To improve your debt-to-income ratio and get pre-approved for a larger mortgage, youâll want to pay off any existing debts that you have. This includes credit card debts, other mortgages, auto or boat loans, student loans, as well as any other lines of credit that require regular repayments.

Fixed Or Adjustable Rate

  • Fixed-rate mortgages are popular because the mortgage interest rate doesnt change over the life of the loan. The rate to which you initially agree will be the rate you keep until you sell the home or refinance.

  • Adjustable-rate mortgages have low introductory rates that start out fixed, but then fluctuate upward. If you don’t plan to stay in the home long, an adjustable rate mortgage could yield savings.

What Is A Homeowner Loan

A Homeowner loan, sometimes referred to as a ‘secured loan’, is an agreement to borrow funds, secured against your property.

To apply for a Homeowner loan you must own your property and have an existing mortgage.

SECURED LOANS – Rates from 2.9% variable. We also have a range of plans with rates up to 65.2% allowing us to help customers with a range of credit problems. Representative 8.6% APRC variable. Representative example: if you borrow £10,000 over 10 years at an Annual Interest Rate of 5.14% you would make 120 payments of £122.71 per month. The total amount repayable will be £14725.20 The overall cost for comparison is 8.6% APRC representative. Maximum APR 65.2%.

We gather some basic information about you and your requested loan using our quick online form below.

Our processing engine uses your details to perform a soft search* which matches you to a broker or lender.

We will show you rates and terms for this specific loan along with the monthly repayments.

Also Check: Reverse Mortgage On Condo

What If My Circumstances Change

Circumstances rarely stay the same, so having a plan in place is always advised. For instance, if you first take out a mortgage on a JBSP basis, but then want to share the mortgage with a partner, youll need to switch mortgage types.

A joint mortgage would be ideal, but youd also be sharing the ownership with your other half. If youd want to retain sole ownership, you may want to keep your mortgage on a JBSP arrangement, but have your partner help you with paying the mortgage.

Financial Help For Homeowners And Landlords


Forbearance is not the same as forgiveness. Forbearance only puts off the inevitable day when paused payments must be made up. Programs funded by the Consolidated Appropriations Act, 2021 and the American Rescue Plan Act of 2021 provide financial assistance to homeowners and landlords under two programs: the Homeowner Assistance Fund and the Emergency Rental Assistance program.

You May Like: How Much Does Getting Pre Approval Hurt Credit

How To Get Help With Your Mortgage During The Coronavirus Pandemic

A new law gives most mortgage holders the option of putting payments on pause. Should you take it?

In late March the $2 trillion Coronavirus Aid, Relief, and Economic Security Act passed into law. Among other provisions providing economic relief from the impact of the coronavirus pandemic, the measure may help if you are struggling to pay your mortgage.

In fact, the law may let you hold off paying your mortgage for almost a year without incurring any fees or extra charges.

Thats good news, of coursebut the laws passage doesnt mean you can simply ignore your mortgage payments in the months ahead. For one thing, the law does not apply to all mortgages.

But even if your mortgage is covered, the relief doesnt kick in automatically: You must reach out to your mortgage servicer . Until you do, says CR senior policy counsel Christina Tetreault, the mortgage is still due.

When you call, have your loan number at the ready and take careful notes on your conversations. And be patient: There is already word of clogged phone lines and long wait times.

Heres what you need to know about the laws mortgage provisions and how to take advantage of them.

Buying Your Council House

Some schemes are designed to help council house tenants buy their homes at a discounted price. Buying your council house could be a good option for those on benefits or with a low income.

The Right-to-Buy scheme

Variations of the scheme are available in England and Northern Ireland but not in Scotland or Wales. To be eligible for the Right-to-Buy plan, you must have lived in a council-owned property for at least three years and use it as your main home. You can apply if you rent from the council, a housing association, NHS trust, or a public sector landlord. Properties let by private landlords are omitted.

You can apply for a Right to Buy mortgage while claiming benefits. Still, you will have to demonstrate your affordability in the same way as you would for standard mortgages. This should be easier if you receive a substantial discount on the market value of the property.

Although many popular high street providers now offer Right-to-Buy mortgages, you may have fewer lenders to choose from. You could also be excluded if you have a history of debt. However, Right-to-Buy remains a good option if you have a low income and claim benefits but dream about owning your council home.

The Right-to-Aquire scheme

While most housing association tenants will not qualify for the Right-to-Buy scheme, they may be eligible for the Right-to-Acquire plan instead. This also offers the chance to buy your council home at a discount, albeit a smaller one.

Read Also: Can You Get A Reverse Mortgage On A Mobile Home

What If You Have A Non

Federal regulators believe most non-government-backed lenders and loan servicers will adopt policies similar to those mandated by the CARES Act and subsequent legislation. To find out, contact your loan servicer, ask what programs it has in place to provide mortgage relief to homeowners impacted by the coronavirus outbreak, and follow any instructions you are given.

Although the CARES Act does not require private lenders to offer mortgage assistance, if you and your lender come to any type of loan modification agreement, then the law regarding not reporting reduced or paused payments to does apply to you.

If your mortgage forbearance is set to expire soon, then you may be able to request an extensionbut you must apply before forbearance ends.

Applying For A Mortgage With The Help Of A Market Broker

Ideal Home Loans: How to get help with finding a home loan

A market broker is not tied to any banks, building societies, or lenders. This means they can expertly assess every mortgage to find you the best deal possible.

If youre claiming benefits, a broker can help you navigate the often confusing world of mortgages. This includes which benefits different lenders will accept as income and how your income sources impact the mortgages you can afford.

For instance, some lenders may only take a percentage of your child benefit and child tax credit as part of your overall income. This is where a brokers expertise may come in handy, helping you find the lender whose criteria best matches your circumstances.

Don’t Miss: Chase Recast Calculator

When Do I Start Getting Support For Mortgage Interest Payments

If the DWP accepts your Support for Mortgage Interest application, you receive payments based on when you receive your qualifying benefit. If you receive:

Pension CreditYou will receive Support for Mortgage Interest payments straight away. Support for Mortgage Interest payments may also be backdated to when you first started getting pension credit.Income-related ESA, Income-based JSA, Income SupportYou will receive Support for Mortgage Interest payments after you have received ESA for 39 weeks in a row .Universal CreditYou will receive Support for Mortgage Interest payments after you have received Universal Credit for nine months in a row, but this depends on other things.

Use A Low Or Nomoneydown Loan

If your primary goal is to buy a home sooner rather than later, your best bet might be a lowdownpayment mortgage. By lowering the down payment bar you can often buy much earlier than if you waited to save 20% down.

Conforming mortgages the most common type of home loan have flexible down payment requirements: You could put 3%, 5%, 10%, or 15% down if you dont have the full twenty.

FHA loans are another great option with just 3.5% down. And qualified buyers should look into the governmentbackedVA and USDA loan programs, which allow 0% down.

Read Also: Recast Mortgage Chase

Check If Financial Support During The Pandemic Could Dent Your Mortgage Chances

At the start of the pandemic, lenders and the Government introduced various support measures for those struggling financially, such as the furlough scheme and payment holidays on credit cards, loans, payday loans, buy now, pay later products and insurance premiums.

Yet if you’re using one of these schemes or you were but it has since closed, such as furlough this can actually dent your chances of getting a mortgage. In brief:

  • Lenders can find out about payment holidays and other forms of ‘forbearance’. While a coronavirus-related payment holiday taken out by 31 March shouldn’t have appeared on your credit file, a mortgage lender could STILL find out about it in other ways. For example, a lender could see your outstanding credit card balance isn’t going down. Any ‘forbearance’ offered by a lender after 31 March will definitely go onto your credit file for example, where you agree to have your mortgage term extended or reduce your mortgage payments. So if you’re planning to apply for a mortgage in the future, think very carefully about whether you need such support. More info on lender forbearance in our Coronavirus Finance & Bills guide.
  • Contact Your Lender First

    How Can a Mortgage Broker Help You Get a Mortgage After ...

    You should always contact your mortgage provider first to see what it can do to help you. It may agree to extend your mortgage term, which would reduce your monthly repayments. The trade-off is that by spreading your payments over a longer period of time you might end up paying more interest in total.

    Alternatively, if your existing deal period has ended, you may be eligible to remortgage to a cheaper deal.

    Your lender may also help you reduce your payments by allowing you to switch to interest-only payments for a period of time instead of paying both capital and interest on your mortgage.

    Don’t Miss: Rocket Mortgage Payment Options

    Government Programs To Help With Mortgage Payments

    Although the federal government still provides some help to homeowners struggling to make mortgage payments, key assistance programs launched during the housing market meltdown a decade ago have expired.

    For information on help that might be available contact a federal Housing and Urban Development office in your area, visit the agencys website or contact a state social services office. HUD and other agencies offer mortgage payment grants to homeowners with hardships.

    Get A Sale Agreed On Your Current Home Before You Buy

    Unless youre a first-time buyer or have a large sum of cash to hand, youre likely to have to sell your current house before purchasing the next.

    However, many buyers are hesitant to list their current homes before they have found somewhere to buy. Waiting might not be the best idea. If you dont already have a buyer for your current property, you could be up against other buyers who have, and sellers and their estate agents could be less likely to take your offer seriously.

    So, if you are going to need to sell your current home in order to move, you should not only put it on the market as soon as possible but also try to agree a sale, according to Rightmove. This will put you in a much stronger position as a buyer.

    Its natural to be worried about where you will live should your property sell before your purchase goes through. But a short time with family or friends, or a brief move into rented accommodation could be preferable if it helps you secure your next home.

    Read Also: Rocket Mortgage Requirements

    Get Preapproved For A Home Loan

    There are a couple of big advantages to getting a mortgage preapproval. One, it shows sellers that you can make a solid offer up to a specific price. Two, it helps you figure out what your mortgage will really cost, since you’ll get details on the rate, , fees and other closing costs.

    It’s smart to get preapproved by at least three lenders. Hey, you’ve already gone to the trouble of digging up all those preapproval documents and comparing rates could potentially save thousands of dollars over the life of the loan. Plus, if you get all the preapprovals within a short period of time , it only counts as one hard inquiry on your credit report.

    » MORE: Ready to go? Get a mortgage preapproval

    Who Is Eligible For The Help To Buy Equity Loan

    Mortgage Relief with Shellpoint (how to get forbearance or modification help)

    The general eligibility criteria for Help to Buy is as follows:

    • You must be at least 18 years old.
    • You must be a first time buyer, meaning that you have never owned another property either in the UK or abroad. If you are purchasing a property with another person, you must both meet the definition of a first time buyer to benefit from the scheme.
    • You will require at least a 5% deposit of the full purchase price of the property.
    • While there are no minimum or maximum income brackets, you must be able to fund at least 80% of the purchase through a combination of deposit and mortgage.
    • The value of the property youre purchasing cant be over the regional price cap for your area full list of price caps below.
    • You must be able to prove you can afford the mortgage repayments and other outgoings on the home you wish to buy. There is a standard Homes and Communities affordability calculator which will determine whether the property is sustainable long term.
    • Part Exchange is not available through the scheme.
    • You cannot sub-let your Help to Buy home.

    Also Check: What Does Rocket Mortgage Do

    How To Get A Down Payment For A House In Canada

    Home \ Mortgage \ How to Get a Down Payment For a House in Canada

    Join millions of Canadians who have already trusted Loans Canada

    If youre hoping to buy a home sometime in the near future, odds are youll need to take out a mortgage to finance it.

    But even though youre borrowing money to finance the property, youll still need to come up with a down payment. Mortgage lenders will want to know that you are financially capable of paying your monthly mortgage payments on time and in full, and your down payment will give them some sort of reassurance that youre good for the money. The higher the down payment, the better.

    Having said that, many Canadian would-be homebuyers struggle to come up with the significant funds needed to make a decent down payment. In Canada, at least a 20% down payment is needed to get approved for a conventional mortgage, though there are high-ratio mortgage options that allow for as little as 5% down. But with the high prices of real estate in many parts of the country, it can be a real challenge to come up with this money.

    To learn more about high-ratio mortgages and default mortgage insurance, .

    So, whats a homebuyer hopeful to do when money is too tight to come up with a down payment for a home? Luckily, there are various sources of funds that can be tapped into to come up with a down payment, and that may potentially include borrowed funds.

    Trying to save for a down payment? Heres how you can do just that.

    Use Your Family’s Savings

    Some lenders offer family offset mortgages which allow parents to help their children on to the property ladder. With this type of deal the family member puts the cash into a linked savings account and it acts as a deposit, therefore lowering the monthly mortgage payments as interest is only charged on the remaining balance. Crucially, although the family member retains ownership of the money, they won’t have instant access to it, so should only hand over cash they don’t need in the near future. These can help boost the amount you can borrow as your families savings might massively increase your deposit. Find out more in our guide to buying with your parents.

    Don’t Miss: 10 Year Treasury Vs Mortgage Rates

    Getting Help Towards The Cost Of Your Mortgage And/or Other Loans Secured On Your Home

    If you are an owner occupier or in a shared ownership scheme, Universal Credit may help with the interest on a mortgage and/or other loan secured on the property you live in. This is called Support for Mortgage Interest , and is paid as part of the Housing element.

    You may receive SMI if you and/or your partner:

    • have a mortgage and/or loan secured on your property, or make alternative finance payments for the home you live in
    • have been receiving Universal Credit continuously for 9 assessment periods
    • have not had any earned income during that time

    Since 5 April 2018 SMI became a loan, which means any SMI you receive from this point must be repaid with interest when you sell or transfer ownership of your home. Prior to this date it was a benefit that did not need to be paid back.

    More articles

    Popular Articles